Govt agrees to amend Sekayu CBM block commercialization terms

By Godang Sitompul

Energy and Mineral Resources Minister Jero Wacik has approved the request of PT Medco Energi EP Indonesia (MEPI), a subsidiary of listed oil and gas company PT Medco Energi Internasional Tbk, to amend the commercialization contract terms of the development of coal bed methane (CBM) in the Sekayu block, South Sumatera.

The amendment allows the company to commercialize the CBM extracted during the dewatering process.

?The amendment of Sekayu block contract has been signed by the Minister. The gas can be commercialized prior to the approval of the plan of development (PoD) of the CBM project,? Director General for Oil and Gas Evita Legowo told Petromindo.com.

The existing contract terms prohibits the operator to commercialize the block during the dewatering stage.

Medco is the operator of the Sekayu CBM PSC where it holds a 50 percent participating interest. The remaining 50 percent is controlled by partner South Sumatra Energy Inc (SSE Inc).

Editing by Roffie Kurniawan